Two things are true in supply chain: disruption is inevitable, and the right technologies can help you rapidly course correct. But investing in those technologies has historically been a low priority during times of disruption. However, this time, as tariffs ramp up and geopolitical uncertainty rises, businesses are leaning into innovation rather than tightening budgets and prioritizing short-term stability.
A recent Economist Impact study of over 800 supply chain leaders found that 71% say their company has accelerated AI deployment in response to recent trade disruptions. Supply chain AI investment is surging, even as other industries’ have reduced or abandoned their initiatives. Have businesses finally learned that disruption rewards bold action? Or is today’s environment uniquely primed for change?
The answer lies at the intersection of three forces reshaping supply chains: an evolved understanding of disruption, a rapidly changing supply chain landscape, and the uniquely transformative nature of AI technology. And if you want to ensure your AI investments deliver real value, then it’s key to understand these influences.
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Here’s why this moment is trend-breaking, according to insights from the latest Economist Impact study, “Supply chain’s big bet on AI for geopolitical resilience.”
We think about disruption in new ways
Supply chain disruptions were once considered temporary problems to push through, but the pandemic, and the many cascading challenges that happened after, shattered that assumption.
The shift for global supply chains is dramatic: in recent years, the Geopolitical Risk Index alone has reached levels not seen since the start of the wars in Afghanistan and Iraq, according to the Economist Impact report.
This sustained period of instability has shifted businesses’ approach to planning. They are no longer treating each disruption as a unique crisis requiring a customized response. Instead, they're investing in capabilities that provide flexibility across a range of unforeseeable future disruptions, from trade policies to natural disasters.
AI fits perfectly into this new environment. When demand patterns shift suddenly, AI-powered forecasting adjusts. When new trade barriers emerge, AI-driven planning solutions can rapidly model alternatives, weigh tradeoffs, and make recommendations. AI is becoming the core capability powering adaptability, and many companies are embracing its potential.
Respondents in the Economist Impact survey say they have already started integrating AI capabilities like predictive analytics (82%), real-time decision support (85%), supplier monitoring (77%), supply optimization (61%), and scenario modeling (55%).
Perceptions of the supply chain are changing
Shifting geopolitical realities have also changed the demands businesses place upon their supply chains—and the expectation that they can deliver big results. AI has accelerated that transition. Once seen as a cost center, supply chains are now recognized as an opportunity-driver. Today, two-thirds of executives say they expect AI usage in the supply chain to payoff within a year from implementation.
However, their confidence isn’t shared. Only 45% of junior leaders have the same expectation. A portion of the obstacles to innovation junior leaders cite are linked to old ways of thinking about supply chains as cost centers. These include organizational inertia, lack of AI implementation strategy, and systems that are incapable of supporting AI workloads.
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While these junior leaders’ initial perceptions of AI blockers may be right, executives' optimism suggests that there’s hope for the future—if organizations can get realistic about the risks and opportunities ahead.
AI is unique from past innovations
Perhaps the most critical factor driving accelerated AI adoption is that, unlike past technologies that offered incremental gains, AI represents a step-change in capability. It’s not just about automating manual work—it’s about augmenting human intelligence, discovering patterns no one could see before, and optimizing decisions across the end-to-end network.
For supply chains, this means a move from static planning to living, learning systems that continuously adapt to real-world dynamics. That’s the real reason behind today’s surge in AI investment: companies have realized that this isn’t a technology trend to test, it’s a foundational shift to embrace.
Where does supply chain AI go from here?
AI has captured the imagination of supply chain leaders everywhere, but imagination alone doesn’t drive returns. As organizations race to deploy new tools, the real differentiator won’t be who implements AI the fastest, but who does it most strategically.
The companies realizing meaningful ROI are aligning initiatives with opportunities—targeting high-impact pain points, building robust data foundations, and ensuring cross-functional collaboration between technology and operations. Without that structure, AI can easily become another layer of complexity—an investment that slows and obscures decision making. But when deployed with intent, AI delivers measurable value: faster planning cycles, smarter risk management, and a more agile, resilient supply chain.
The takeaway is clear: Organizations that approach AI as a strategic transformation, not a technology experiment, will be the ones that turn disruption into opportunity—and innovation into real business impact.
Learn more about the state of AI in supply chain today by downloading the full Economist Impact report, “Supply chain’s big bet on AI for geopolitical resilience.”
Ready to start thinking strategically about your AI deployment? Learn about purpose-built AI for smarter supply chains from Kinaxis.
